Regulatory Compliance and Legal Risk Management for Financial Institutions

Module 1 also available as a single‑day program.

Building on core concepts in the Introduction to Compliance and the Regulatory Landscape primers, you will get practical guidance on how to identify challenges and generate solutions when developing or refreshing a compliance program.

Nuts and Bolts of a Successful Compliance Program

• Three Lines of Defence, OSFI Guideline E‑13
• Governance and regulatory change management• Policies, procedures and controls
• Training, education and awareness
• Testing, monitoring and reporting
• Overview of regulatory and third‑party risks
• Crisis management and setting the tone from the top
• Interplay among compliance, risk and legal – who manages risk?
• Accountability, communication and relationship management
• Tips for preparing for the “future of compliance”

Risk Management Fundamentals: Types of Risk and Qualitative Control 

• Various categories of risk: operational, strategic, reputation, financial/credit
• How to identify, mitigate and control risks effectively
• Enterprise‑wide risk management (ERM) and holistic risk management
• Purpose of stress testing, risk profile, risk appetite and risk tolerance
• Regulators’ risk rating methodologies
• Integrating risk management into governance and compliance
• Understanding qualitative vs. quantitative assessments and risks

Compliance Officer of the Future – Resilient and Future‑Proof 

• Key challenges and innovations and other forces that will require a rethink of compliance
• Evolutions in risk, program and delivery – resilience and continuity frameworks
• How compliance can demonstrate resilient behaviour using AI/tech
• Strategies for pivoting/adapting to new settings and regulatory guidelines, including OSFI’s new guideline on Resiliency
• Insights to enhance compliance’s standing in the organization

Overview of Managing Regulatory Reviews, Exams and Complaints

• Overview of lifecycle – from complaints, to exam prep, to exit reviews/action plans
• Key components, challenges, issues and risks
• Practical tips/insights/strategies to overcome common pitfalls
• Suggestions for additional reading and resources

Building on concepts covered in the Privacy, Outsourcing, ABAC and AML and ATF Basics primers, you will delve into how to more effectively manage regulatory and operational risk using key building blocks in your organization’s compliance program.

Privacy, Information, Cybersecurity and Anti‑Spam

• PIPEDA, fraud detection prevention and breach notifications
• Information security regulatory expectations and implications of the Cloud
• Navigating change management and associated challenges
• Delving into technology risk and cyber breaches, expectations and developments
• Spotlight on key US/international perspectives, trends and influences in Canada

AML, ABC, ATF and Economic Sanctions

• Regulations, requirements, core principles and program elements
• Recent amendments
• Implications for getting it wrong
• Role of compliance in overseeing associated risks, cyber breaches and information security reviews on new projects
• Special issues to prepare for, including new laws and more formal requirements

Outsourcing and 3rd Party Risk Management

• Risk‑based approaches to getting the deal done
• Managing third party relationships
• Role of compliance in due diligence and information security reviews on new projects
• How to avoid or resolve common pitfalls

Role of the Board and Board Reporting

• Turning data and reports into decisions and actions (analytics/tools)
• Elements of risk indicators (theoretical/practical)
• How to prioritize regulatory expectations
• Best practices for reporting and setting regulatory expectations

Interactive Case Study: Managing Complex Issues with Varied Compliance Mandates**

Applying core concepts and principles, participants will review a case study and work in small breakout groups to navigate unique, real‑world scenarios while managing compliance programs that vary in size, structure, profile and mandate. Faculty will provide instruction, guidance, a class debrief and recommendations. 

**Note: breakout groups will not be recorded.

Measuring and Demonstrating Culture and Compliance

• Enterprise navigation – how corporate culture impacts compliance culture
• Tips for telling your “compliance story” internally and externally to regulators
• Strategies for measuring, demonstrating and testing culture and compliance
• Best practices for effective communication and regulatory relationship management

Building on concepts in the Behavioural Ethics and Compliance primer, this module focuses on managing regulatory incidents with practical guidance for identifying challenges and solutions.

Interactive Case Study: Managing Regulatory Reviews and Examinations**

You will review the core risks, challenges and issues involved at each stage of managing regulatory reviews and examinations – before, during and after – with a special focus on key risk elements, best practices and common pitfalls. You will then review a realistic fact scenario and work in small breakout groups to analyze the issues, identify key risks and challenges, suggest solutions and report findings and challenges. Faculty will provide instruction, guidance, a class debrief and recommendations.

**Note: breakout groups will not be recorded.

Managing Complaints, Client Disputes and KPIs

• Consumer protection framework – what you need to know and your new obligations
• Lifecycle of an unhappy client and the role of compliance in the ecosystem
• When is complaint tracking and reporting required by regulators?
• How to use complaints and KPIs to drive business improvement?
• Roles of compliance, customer complaints teams, mandates and key considerations
• Dealing with complaints effectively

Treating Customers Fairly and Market Conduct

• What is “fair” behaviour and why is it important? Designing programs to incent “fair” behaviour
• Legal developments and trends – what you need to know and your new obligations
• Creating fairness across all channels and recognizing and adjusting for behavioural biases and asymmetrical information and communication
• How to assess whether you are dealing with vulnerable customers appropriately

Behavioural Ethics and Compliance: Navigating Evolving Regulation and Expectations

• Regulators’ greater focus on ethical standards and integrity culture
• Key regulations, developments and the shifting role and expectations of compliance
• Need for judgement‑based assessments of business conduct
• How can decision theory help explain unethical behaviour?
• How compliance can address common rationalizations applied to unethical behaviour
• Strategies for when compliance can use behavioural ethics to be more effective

Interactive Discussion: A Day in the Life of Compliance… What Would You Do? 

Faculty will lead participants through a series of brief and interactive discussions involving short scenarios in compliance and risk. Participants will have the opportunity to reinforce concepts and to “think on their feet” by suggesting a course of action or response. Session will include insights, strategies and tips for navigating challenges.

Exploring concepts in the Regulatory Landscape, Privacy, Outsourcing and AML/ABC/ATF primers, major regulators and industry associations will share essential intel and insights on their new mandates, approaches to monitoring business, and where things are heading, including:

• Financial Consumer Agency of Canada (insights from the trenches)
  
• Office of the Superintendent of Financial Institutions
• Office of the Privacy Commissioner of Canada
• Canadian Securities Administrators / Ontario Securities Commission
• Canadian Investment Regulatory Organization
• Financial Services Regulatory Authority of Ontario
• Autorité des marchés financiers

Interactive Discussion: A Day in the Life of Compliance… What Would You Do? 

Faculty will lead participants through a series of brief and interactive discussions involving short scenarios in compliance and risk. Participants will have the opportunity to reinforce concepts and to “think on their feet” by suggesting a course of action or response. Session will include insights, strategies and tips for navigating challenges.

Building on the Technology and Industry Disruptors primer, you will examine emerging risks involving technology, industry disruptors and global trends, to elevate your organization’s compliance efforts and resilience.

Technology and Industry Disruptors and Case Studies

• What is each technology and how does it work?
• How it is being used – features, strengths and weaknesses
• Implications for compliance and oversight
• Regulatory implications – testing, monitoring, reporting and oversight
• Data analytics and technology such as AI, ML, RPA, blockchain and bitcoin – key challenges, issues, risks, regulatory developments and expectations
• Using technology to build better compliance, includes tips and best practices

International Standards and Operations

• International standards and impacts on Canadian financial institutions
• Managing regulatory expectations and compliance programs in cross‑border or multinational businesses
• Managing client relationships in foreign jurisdictions
• Beyond risk and compliance – corporate governance and culture
• Compliance and lobbying – what are the effects on regulation and what are the implications?
• Special issues and concerns involving international standards and lobbying

Building Better Compliance: Managing ESG 

• How does ESG relate to the evolving role of compliance?
• Key developments, trends and the nexus to compliance
• More formalized expectations – industry demands and regulators weigh‑in
• Key challenges, obligations and risk management strategies
• Approaches for addressing common pitfalls and challenges
• Tips for effective communication and elevating culture

Interactive Panel Discussion: The Future of Compliance – Where Are Things Going?

Learn about the future of compliance as a career and as a “strategic business asset” and how to adapt to current and emerging global regulatory and supervisory changes and expectations. Key themes include:

• Overview of compliance careers, resources, and challenges in finding rightly skilled people, etc.
• Strategies for optimizing compliance as a “strategic asset” to the business
• Insights for building the compliance profile and demonstrating business strength
• Tips for dealing with evolving risk, regulatory focus and expectations involving new and emerging technology and cybersecurity issues

FINAL ONLINE EXAM: 

Available after Module 5, the online multiple‑choice exam requires completion with a passing grade of 80% due by April 19, 2024.

These primers focus on core compliance concepts for financial institutions (approx. 1 hour each) for those who may be newer to the area or those who may benefit from a succinct refresher. All primers are included with the Certificate or the Fundamentals of Compliance (Module One) programs and are available on demand. Each primer is aligned with Certificate modules. We recommend viewing the appropriate primer before each Module (see above agenda for outline).

To obtain your Certificate, all primers must be viewed:

• Introduction to Compliance
• Regulatory Landscape
• Privacy
• Outsourcing
• AML and ATF Basics
• ABAC
• Behavioural Ethics and Compliance
• Technology and Industry Disruptors